A Research On H Securities Company About The Risk Control Method Of Margin Trading

The securities credit trading system was basically established since July, 2006, when a series of rules have been issued. And till now, margin trading has a history of six years in China and has developed rapidly. It provides not only investors with a new investment channel, a new financing channel and a new hedging channel, but also brokers with a new revenue growth. In the autumn of 2015, China's securities market has experienced extreme conditions with margin trading. The market value shrunk about 15 trillion and the stock index fell 30%. Then the participants began to face up to the risk brought by margin trading.The article apply management knowledge as well as practical working experience, using literature research method, case analysis method and qualitative ana lysis method, to the risk control method of margin trading in H securities company. The purpose is to make it not only satisfy the requirements of supervisors, but also adapt to market development and fit company's reality.H securities is chosen to be as a model. The article introduces the definition of margin trading at the beginning, and then its features, and the differences with ordinary trading. What's more, the article surveys the development of margin trading in both mature capital market and in China. During the process of research on H securities, the starting point is its current development of margin trading and its profit model. The possible risk that may occur in margin trading is concluded as credit risk, liquidity risk, operation risk, etc., and these risks are further divided into two catalogues: internal risk and external risk. After that, the risk control method of margin trading is analyzed in detail in order to find out the weakness and the causes of it. Furthermore, according to all ana lyses above, an optimized risk control method of margin trading is provided. In the end, the article figure out that only when H securities has a health business culture, continuous training program, mature information technology system and regular audit requirement can the company operate the better risk control method.H securities is a company with a solid brokerage business foundation and rich experience on margin trading. And the whole industry faces the same market environment and supervision environment. Thus the weakness in risk control method of margin trading may exist not only in H securities but also any other securities. The article intends to develop a more mature and effective project, combined with the risk recognition method and big data, that can benefit both H securities and other securities in the industry.